Weekly Web3 Research | Market Rebounded After An Overall Decline; The Market Cap of The AI ​​Agent Sector Fell Below $7 Billion

Weekly Trend Overview

This week, the crypto market was affected by Trump’s tariff policy. Affected by the large-scale decline in the stock market, the crypto market also saw a large-scale decline during the opening period. A general decline is the basic norm. Later, after the Canadian and Mexican governments agreed with the US government that the tariffs would take effect in a month, the market recovered slightly. Overall, the market was greatly affected by external news this week, and DeepSeek greatly impacted the US AI industry. The risk aversion of funds and the large-scale liquidation made the crypto market more serious this week. The market is approaching the closing time of the week, and the market has rebounded compared with the opening time of Monday, but it is unlikely to show a significant upward trend in the short term.

Most mainstream cryptocurrencies have experienced a round of obvious continuous decline since the opening period. Due to the widespread decline of US stocks this week and the rapid changes in regulatory policies after Trump took office, the current market trend is very unclear. The market is expected to be mainly sluggish in the short term.

This week, the price of BTC showed a rapid decline after the opening and reached a weekly low of around $92,876 on Wednesday. The price of BTC fell below $100,000 this week, but there was no large-scale rebound below the key price of $90,000. Currently, the coin has maintained a small fluctuation above $95,000, and there is a high degree of uncertainty in the price fluctuation in the short term. Overall, the prices of key mainstream currencies this week are mostly in a similar trend state. It is expected that there will be more clear news factors in the subsequent market cap in the short term. The current market sentiment has fallen to around 35. The overall market cap growth of the crypto market has dropped significantly compared with the same period last week, reaching around $3.15 trillion, a drop of 1.32% in 24 hours.

Compared with last week, the overall performance of the crypto market this week was mainly a continuous decline, which rebounded after the mid-week period and is currently maintaining a small fluctuation. The price of BTC has fluctuated in the range of $95,000-$97,000. The price trend of ETH is similar, and the current price remains around $2,700.

The overall crypto market continued to fall this week, and recovered somewhat in the middle of the week, but most mainstream coins were lower than the opening price. The top coin with the largest increase this week was XAUt, but it has little reference value, with an actual increase of about 3% in a week.

This weekend, the overall trend of the cryptocurrency market is dominated by a general decline across the board, and the overall market trend will likely remain sluggish in the short term.

Crypto Market

🔥Data shows that the total amount of liquidation on the entire network reached $438 million on Monday, of which the amount of long position liquidation was approximately $408 million, and the amount of short position liquidation was approximately $30.37 million.

🔥According to Coingecko data, the total market cap of AI agent sector tokens fell to $7.085 billion on Monday, a 24-hour drop of 25.1%.

🔥According to Dune data, the total on-chain holdings of the U.S. spot Bitcoin ETF have exceeded 1.2 million BTC, and now reach about 1.204 million BTC, accounting for 6.08% of the current BTC supply. The on-chain holding cap has reached about $123 billion.

🔥According to Bloomberg, BTC Markets CEO Caroline Bowler said: “Trump’s tariff policy is affecting the entire market, and concerns about trade wars and stagflation-induced recessions are spreading to altcoin and Bitcoin markets.”

🔥According to TradingView data, BTC Dominance has returned to above 60% (currently 61.11%), up 5.22% so far this year.

🔥Affected by Trump’s tariff war concerns, South Korea’s Bitcoin “Kimchi Premium” soared to 9.7% at 2 a.m. on February 3, hitting a 10-month high since April 2024.

🔥Cryptocurrency traders have slashed their positions in a range of tokens in response to the tariffs announced by U.S. President Trump over the weekend. Data showed that Ethereum, the second-largest digital asset by market cap, plunged 27% to $2,135 in Asian markets on Monday morning before narrowing its losses. This was the token’s largest intraday drop since May 2021.

🔥Traders cut bets on the Federal Reserve to cut interest rates, and now see a 50% chance of two cuts in 205.

🔥On February 3rd local time, affected by the US tariff order, the yield on newly issued 10-year government bonds in the Japanese bond market, which is the main indicator of long-term interest rates, once rose to 1.260%, the highest point since April 2011.

🔥QCPCapital’s latest analysis points out that the Trump administration’s first round of trade policies has caused sharp fluctuations in global markets. The Treasury yield curve has flattened in a bear market - the 2-year yield has risen while the 10-year yield has fallen, indicating market concerns about short-term inflation and the long-term risks of the trade war to global economic growth.

🔥Cryptocurrencies plunged after Trump announced additional tariffs on Canada, Mexico, and China. Bitcoin lost the key $100,000 mark and hit a three-week low of around $91,251.11 on Monday. Ethereum fell about 25% at one point to its lowest level since early September last year.

On the other hand, analysts pointed out that the popularity of DeepSeek, a low-cost AI model from a Chinese artificial intelligence (AI) startup, has also hit cryptocurrencies because it has cracked the long-standing path dependence of the global AI industry on “stacking computing power” and has shaken the U.S. AI industry, stimulating investors to sell stocks and cryptocurrency positions of U.S. AI giants.

🔥According to Whale monitoring, USDC Treasury minted 250 million new USDC on the Solana chain.

🔥According to an analysis by Santiment, as global stock markets fell sharply this week, the cryptocurrency market also fell, and public opinion seemed to blame the plunge on “Trump’s trade war.” Whether it was the main reason or there were other factors, traders in the cryptocurrency community reacted very negatively.

🔥According to the latest weekly data from CoinShares, the total inflow of digital asset investment products last week reached $527 million.

🔥Fed’s Bostic: Be prepared to wait a while before cutting interest rates.

🔥According to Trader T’s monitoring, the trading volume of the BlackRock Ethereum ETF ETHA reached $700 million on Monday, a record high.

🔥According to Farside monitoring, Fidelity Ethereum ETF FETH had a net inflow of $49.7 million on Monday, while Bitcoin ETF FBTC had a net outflow of $177.6 million.

🔥According to TraderT monitoring, the U.S. spot Ethereum ETF had a net inflow of $83.54 million on Monday.

🔥Remixpoint, a Japanese listed company, released its latest announcement on February 3, stating that the company had issued an “Announcement on Additional Purchase of Crypto Assets” on January 30, 2025, and at the board meeting held on the same day, it resolved to purchase additional crypto assets totaling 2 billion yen (approximately $12.89 million).

🔥Sol Strategies, a Canadian listed company, issued an announcement disclosing that between January 19, 2025, and January 31, 2025, the company completed the purchase of an additional 40,300 SOLs at a price of approximately 14,337,332 Canadian dollars ($9,935,329), with an average price of 355.77 Canadian dollars ($246.53) per SOL, including fees and expenses.

🔥Semler Scientific, a US-listed company, announced today that it has spent $88.5 million to increase its holdings of 871 BTC. Since July 1, 2024, Semler Scientific’s BTC yield has been 152%, currently holding 3,192 BTC.

🔥Republican Senator Bill Hagerty will submit the Stablecoin Regulatory Framework Act on Tuesday in response to the crypto industry’s call for clear regulation. The bill aims to create a predictable regulatory environment for stablecoins pegged to the US dollar and has the support of President Trump.

🔥Sunil, a representative of FTX creditors, disclosed on X that it has been determined that FTX repayment will begin at 10:00 a.m. Eastern Time on February 18, 2025, and creditors with claims of less than $50,000 will be repaid first.

🔥The U.S. Securities and Exchange Commission (SEC) is downsizing a specialized unit of more than 50 lawyers and staff working on cryptocurrency enforcement actions, according to five people familiar with the matter.

🔥MicroStrategy did not sell any Class A common stock under the stock offering plan between January 27 and February 2, nor did it purchase any bitcoin. As of February 2, the company held approximately 471,107 bitcoins with a total purchase price of $30.4 billion.

🔥The entities behind U.S. President Trump’s cryptocurrency raked in nearly $100 million in transaction fees in less than two weeks, according to estimates from three blockchain analytics firms, a massive windfall but leaving thousands of small traders with losses.

🔥According to Bitcoin Magazine, U.S. Ohio Senator Sandra O’Brien has introduced a bill proposing establishing a Bitcoin reserve and requiring state entities to accept Bitcoin as a payment method.

🔥 According to Cointelegraph, Landon Zinda has resigned as policy director of the cryptocurrency advocacy organization Coin Center and joined the cryptocurrency working group of the U.S. Securities and Exchange Commission (SEC).

🔥According to a post by @lars0x, director of research at The Block, several crypto market indicators hit record highs in January 2025, with the adjusted total on-chain transaction volume falling 10.5% to $600 billion (BTC: -4.4%, ETH: -23%).

🔥According to CoinDesk, Wall Street bank Citi said in its latest research report that as digital asset adoption grows, the correlation between Bitcoin and the stock market is expected to weaken in the long run.

🔥According to Decrypt, Standard Chartered predicts that Bitcoin will rise to $500,000 during Trump’s term, close to half the gold market cap.

🔥Bloomberg analyst James Seyffart tweeted that according to his Bloomberg News colleague Emily Nicolle, BlackRock may launch a Bitcoin ETF in Europe, perhaps following the same strategy used in Canada.

🔥U.S. Senator Anthony Thornto of New Mexico submitted the “Strategic Bitcoin Reserve Act,” proposing to invest 5% of public funds in Bitcoin.

🔥According to PRNewswire, derivatives market CME Group released market statistics for January 2025, revealing that the number of contracts on its platform reached 27.5 million, with average daily volume (ADV) increasing by 2% year-on-year.

🔥According to the FDIC official website, the U.S. Federal Deposit Insurance Corporation (FDIC) released 175 documents today involving the supervision of banks involved in or attempting to participate in crypto-related businesses.

🔥On Wednesday local time, MicroStrategy, the listed company with the largest Bitcoin holdings in the world, announced that it had officially changed its name to Strategy and released its fourth-quarter financial report.

🔥According to Cryptoslate, blockchain security company Scam Sniffer reported that cryptocurrency phishing scams stole $10.25 million from 9,220 victims in January, a 56% drop from the $23.58 million losses in December.

🔥According to crypto analyst Rekt Capital, Bitcoin’s market capitalization share (BTC Dominance) needs to break through 70% before a new round of altcoin season can begin.

Regulatory & Macro Policies

🔥Utah could become the first U.S. state to establish a Bitcoin reserve due to its short legislative window and “political momentum.”

🔥US President Trump officially announced on the 1st that tariffs would be imposed on China, Canada, and Mexico, the three largest sources of imports for the United States, sparking concerns about a trade war.

🔥The Bank of England is expected to cut interest rates by another 25 basis points this week as policymakers weigh signs of a weakening British economy and the prospect of a short-term pickup in inflation. Financial markets have been betting that the Bank of England’s Monetary Policy Committee will cut official interest rates to 4.5% on Thursday, which would be the third cut in borrowing costs in more than half a year.

🔥ECB Governing Council member Simkus: Supports another 25 basis point rate cut in March. A looser monetary policy can be allowed. Trump’s tariff policy has increased uncertainty. It is expected that there will be several more rate cuts after March.

🔥Russia’s Ministry of Energy announced today that it plans to establish a single registry for cryptocurrency mining equipment, making it mandatory for all cryptocurrency mining operations to register.

🔥According to Solid Intel, David Sacks, the artificial intelligence and cryptocurrency “czar” appointed by US President Trump, will hold a press conference at 2:30 pm EST on February 4 (3:30 am Beijing time on February 5) to outline the US government’s leadership plan in the field of digital assets.

🔥Trump said he had reached an agreement with the Mexican president to suspend the expected tariffs for one month immediately.

🔥On February 4, according to Reuters, lawyers at the U.S. Securities and Exchange Commission (SEC) were told that they must obtain approval from leadership before officially launching an investigation. This procedural change may slow down the investigation process.

🔥US President Trump signed an utive order on Monday to create a US sovereign wealth fund. The White House said the order instructs the Treasury and Commerce departments to begin reviewing the process of establishing a sovereign wealth fund.

🔥U.S. Treasury Secretary Scott Bessant is now acting director of the Consumer Financial Protection Bureau, according to people familiar with the matter, indicating that the Trump administration may shift away from the strict enforcement and regulatory approach under Rohit Chopra.

🔥February 4 news, on the afternoon of February 3 local time, early morning Beijing time today (February 4), Canadian Prime Minister Trudeau said after a phone call with US President Trump that the United States will suspend the imposition of tariffs on Canada for at least 30 days.

🔥According to CoinDesk, Caroline Pham, acting chairperson of the U.S. Commodity Futures Trading Commission (CFTC), said on Tuesday that the regulator has reorganized its law enforcement division to “refocus” on combating fraud and “stop regulating through law enforcement.”

🔥According to The Block, U.S. lawmakers are forming a working group, including members of key committees of the House of Representatives and the Senate, to develop a regulatory framework for digital assets and stablecoins.

🔥According to The Block, the newly established cryptocurrency working group of the U.S. Securities and Exchange Commission (SEC) will have a series of priority tasks as the agency is taking a different direction from the past few years.

🔥According to The Block, at a joint Washington press conference with leaders of key congressional committees on Tuesday, President Donald Trump’s newly appointed “cryptocurrency chief” David Sacks outlined the new administration’s broad pro-cryptocurrency agenda.

🔥According to crypto KOL MartyParty, the U.S. Federal Deposit Insurance Corporation (FDIC) announced today that it is actively re-uating its regulatory approach to cryptocurrency-related activities.

🔥U.S. Senator Ant Thornton submitted the “Strategic Bitcoin Reserve Act” to the New Mexico Senate, proposing to invest 5% of public funds in Bitcoin, aiming to establish an alternative treasury for the state. The proposed 5% allocation will diversify the state’s funds and enable it to benefit from the long-term price appreciation of Bitcoin.

🔥According to Solid Intel, (newly appointed US Treasury Secretary) Bessent, and (Trump’s nominee for Commerce Secretary) Lutnick are expected to launch their (US) sovereign wealth fund plan within 90 days, while Sacks’ (AI and cryptocurrency “czar”) crypto plan is expected to be announced within 170 days.

Crypto Market Highlights

⭐️Last week, the overall trend of the cryptocurrency market was affected by external news and the decline of US stocks, and the overall decline was very obvious. Although the market has rebounded, the extent is very limited. The market is still relatively sluggish as it approaches the weekend closing period. The subsequent rise and fall are still more affected by the changes in external news factors.

⭐️This week, XAUt ranked first among mainstream coins with a slight increase in the crypto market, mainly because the coin is related to the gold price. With the impact of Trump’s tariff policy on the global market, the short-term rise in gold prices is very obvious, which has led to a certain increase in the price of XAUt. The coin has risen by about 3% in a week, and the current price remains around $2,870, and is still in a relatively stable range of small fluctuations.

BTC & ETH Weekly Performance

Bitcoin (BTC)

(Data Courtesy Of TradingView)

After a continuous decline after the market opening this week, the price of BTC rebounded in the middle of the week and broke through the $100,000 level again in a short period, but subsequently fell below this key price again due to lack of price support. The current price of BTC is fluctuating downward, and has been affected by external news factors within a week. The price of the coin is maintained in the range of $96,000, significantly lower than last week’s closing period.

Ethereum (ETH)

(Data Courtesy Of TradingView)

ETH’s price movement this week is similar to BTC’s. The short-term decline and spike after the opening is more serious, and the short-term price once fell below the key price of $2,200. ETH price is currently maintained at around $2,700. Although there is a certain price recovery in the mid-week period, it is in a state of weak growth. The high point of ETH price in the week is around $3,200 during the opening period. The coin is in a continuous small fluctuation channel. It is expected that the weekend will be affected by new news factors and there will be significant price changes.

Web3 Project Trend

This week, the total market cap of seven types of projects fell across the board. This week, the overall market was mainly affected by external news factors, and there was an overall lack of clear upward signals. The sluggish trend is expected to be the mainstream market trend in the short term.